eBay stores in Sainsburys?

Online marketplace eBay has signalled that it is looking at how it may work with Sainsburys now the grocery giant has bought out Argos.

eBay has long had a relationship with Argos, where the marketplace’s customers can visit to collect their goods as an alternative to having them delivered to their homes.

According to some UK media sources, Bay would consider setting up ‘pop up’ shops in Sainsburys supermarkets. It is believed that Argos stores will be set up as concessions within the grocer’s larger supermarkets in much the same way as Timpsons and other companies do now. eBay would therefore be seeking a direct relationship with Sainsburys as opposed to Argos as it does now, with click and collect facilities in the supermarket.

Ebay’s director of EU advertising strategy, product and operations Phuong Nguyen, was quoted as saying in a reported published yesterday (12 July) by Marketing Week: “If there’s one clear thing from the strategy with Argos we’ve learned it is that consumers today want to shop on their terms. We have to be wherever they are, and wherever they want to shop. If that means eBay being more present in locations around the UK then that’s where we will be.”

For all the cost benefit of not having a physical store, there are drawbacks such as potential customers’ inability to look at and feel products before they buy. Another benefit for eBay is that it can utilise its relationship with Sainsburys even as the grocer goes head to head with Amazon, something that could be very beneficial to both companies – Amazon has yet to have a physical store network of any kind…

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